China insulation market growing 9.4 percent annually

CLEVELAND -- Demand for insulation materials in China is projected to grow 9.4 percent annually through 2016, to $10.56 billion, driven by continued expanding construction and manufacturing.

According to a new report from Cleveland-based Freedonia Group Inc., foamed plastics will continue to dominate the Chinese insulation market, accounting for more than four-fifths of demand (by value) in 2016. Foamed plastics' high insulating value, moisture resistance, and ease of installation will continue to support demand gains going forward.

Generally, "further growth will be spurred by changes in building codes to reduce energy consumption in building applications as well as efforts to reduce energy use in manufacturing processes," the report said.

Demand for insulation in the industrial and HVAC (heating, ventilation and air-conditioning) equipment market will rise 8.4 percent annually through 2016. Efforts to reduce energy consumption and costs in these applications will spur growth in this market.